Set Up a Home-Based Business in the UK
Work from the comforts of home with 3E Accounting’s quick read on how to set up a home-based business in the UK.
Not interested in long commutes, cubicle workspaces and getting yelled at by an irascible boss? Then you need to know how to set up a home-based business in the UK. Home entrepreneurs are mushrooming in the new pandemic-era commercial scene. It’s a great opportunity to be independent, in charge and doing business your way.
Business Begins at Home
Home-based businesses or HBBs can be a small or medium enterprise (SME), a franchise or an online e-commerce business. It is considered an HBB as long as the business activity takes place within your property or house.
Starting an HBB sounds easy, cost-effective, and stress-free, but this is failing to see the forest for the trees. Business, whether home-based or otherwise, should be approached with the same meticulous care as any commercial venture.
That means starting with a business plan and researching what type of HBB to do. The United Kingdom offers many opportunities for those seeking to work from home. These include, amongst others:
- Freelance writing or copyediting
- Bookkeeping or accounts
- SEO consultant
- Freelance graphic or website designer
- Photo or video editing
- Social media influencer, blogger, vlogger or consultant
- Online tutor, fitness instructor, life coach
- Pet walker, groomer, etc.
- Stock trading
- Organic or speciality food
The trick is to find something that you are good at and would really enjoy doing. If it’s a niche service or product, so much, the better. Check out the competition, do market research and plan a scalable financial forecast. As this is an HBB, an important consideration is whether your home is business-ready. If yours is an online business, then you should have a proper laptop and Wi-Fi connections. A food business may require a sizable kitchen space to work in. Similarly, childminding will require that your home is safe and hygienic for the children.
Registering your business is the next step, and popular entities include sole traders, partnerships and limited companies. HMRC registration is mandatory, and depending on your annual turnover, you may need to register for value-added tax (VAT). You may want to consider getting a serviced business address for registration. This portrays a more professional image for your business. It also comes in handy if your home is a rental and you need to move.
Having an HBB does not mean you are exempt from licensing and permits. What approvals you do need will depend on various factors, and the UK Government website offers some insights. This may include planning permissions from your local authority as well as business licences. For example, if your HBB is a food-based business, then you may need a food safety certificate, etc. It’s always best to check with the relevant authorities for further guidance and information.
There are a lot more considerations on how to set up a home-based business in the UK than mentioned here. 3E Accounting is ready to assist you with affordable and customisable business solutions. As industry experts, we offer comprehensive packages that will ensure a seamless way of doing business. Our fully digitalised services leverage cutting-edge technology to deliver scalable and measurable outcomes. Contact 3E Accounting today to begin your home-based entrepreneurial journey with 21st-century solutions and technology.